Consumer car finance new business volumes fell by 3% in January 2023

New figures released by the Finance & Leasing Association (FLA) show that consumer car finance new business volumes fell in January 2023 by 3% compared with the same month in 2022. The corresponding value of new business fell by 5% over the same period.  In the twelve months to January 2023, new business grew 5% by value and held steady by volume, compared with the same period in 2022.

The consumer new car finance market reported a fall in new business of 6% by value and 10% by volume in January compared with the same month in 2022.  In the twelve months to January 2023, new business volumes in this market also decreased by 10% compared with the same period in 2022.

The consumer used car finance market reported new business volumes in January at a similar level to the same month in 2022, while the value of new business fell by 4% over the same period. In the twelve months to January 2023, new business volumes in this market grew by 4% compared with the same period in 2022.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The consumer car finance market reported a modest fall in new business in January. In the first half of 2023, household expenditure is likely to remain relatively weak as pressures on household incomes from high inflation, and higher interest rates and taxes continue, but we should see a further easing of supply shortages in the new car market as the year progresses.

“FLA’s latest research suggests that the value of consumer car finance new business is likely to contract by 6% in 2023 to £38 billion. The value of new business provided to consumers for new car purchases is expected to grow by 4% in 2023 to £18 billion, while consumer used car finance new business by value is forecast to fall by 12% in 2023 to £21 billion.   

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

*Article Source http://www.fla.org.uk